NAICS Code for Woodworking Businesses (2026 Guide)
Not sure which NAICS code to use for your woodworking business? We break down the main codes for furniture makers, wood crafters, and home décor sellers — and explain why getting the right code matters at tax time.
This guide reflects NAICS codes as used by the IRS on Schedule C for woodworking businesses in 2026.
If you make and sell wooden items — furniture, home décor, signs, cutting boards, toys, or custom cabinetry — and you’re trying to file your Schedule C or register your business, you’ll need to select a Principal Business or Professional Activity Code. That code comes from the NAICS system, and for woodworkers there are several options depending on what you make and how you sell it.
The right code matters more than most makers realise. The IRS uses your NAICS code to benchmark your return against similar businesses. Choose a code that doesn’t reflect your actual activity and your cost profile may not match what the IRS expects — which can attract unnecessary attention.
Let’s work through the options.
What is a NAICS code and why does it matter for woodworkers?
NAICS stands for the North American Industry Classification System. It’s a six-digit code used by the IRS, Census Bureau, and state tax agencies to classify businesses by their economic activity. You’ll encounter it when filing Schedule C, applying for a business licence, or registering for sales tax in most states.
A few things this code affects:
- The IRS compares your return to others in your code. If most woodworking manufacturers in your code have significant material costs (lumber, hardware, finishes) and yours are minimal, that’s a mismatch worth investigating from the IRS’s perspective.
- State incentives and tax exemptions are sometimes tied to NAICS codes. Manufacturing codes may qualify you for sales tax exemptions on raw materials that retail codes don’t.
- Manufacturing vs. retail classification affects your COGS treatment. If you make your own pieces from raw materials, a manufacturing code supports claiming those costs as COGS on Schedule C.
Need to get your raw material and product inventory under control?
Try Craftybase - the inventory and manufacturing solution for DTC sellers. Track raw materials and product stock levels (in real time!), COGS, shop floor assignment and much more.
It's your new production central.
Are you a manufacturer, a wholesaler, or a retailer?
Before picking a code, you need to identify how your woodworking business actually operates. The right category depends on what you make, not just how you sell it.
You’re a manufacturer if you buy raw materials — lumber, hardwood, plywood, dowels, hardware, stain, finish — and create finished wooden products. This is the most common situation for woodworkers selling on Etsy, at craft fairs, through their own website, or to direct customers.
You’re a wholesaler if you primarily sell your pieces in bulk to retailers, interior designers, furniture stores, or galleries — rather than directly to end customers.
You’re a retailer if you sell woodwork you didn’t make yourself (buying and reselling), or if you operate a furniture or home goods shop.
Most people reading this are manufacturers. That’s the classification that best supports your tax deductions.
NAICS codes for woodworking manufacturers
If you make wooden products from raw materials and sell them — whether through Etsy, your own website, craft markets, or directly to customers — you’ll use one of two primary manufacturing codes depending on what you make.
337122 — Nonupholstered Wood Household Furniture Manufacturing
This is the primary code for woodworkers who make furniture — tables, chairs, shelving, beds, desks, cabinets, benches, and similar household pieces. It covers:
- Dining tables and chairs
- Bedroom furniture (beds, nightstands, dressers)
- Bookshelves, entertainment units, and storage
- Coffee tables, side tables, and accent furniture
- Children’s furniture (cribs, toddler beds, kids’ tables)
| Code | Description | Best for |
|---|---|---|
| 337122 | Nonupholstered Wood Household Furniture Manufacturing | Woodworkers making furniture from raw materials |
On your Schedule C, this code appears under “Manufacturing → Furniture and Related Product Manufacturing.” The IRS will expect this business to have significant lumber and hardware costs relative to revenue, which is exactly right if you’re claiming wood, stain, screws, and other materials as expenses.
321999 — All Other Miscellaneous Wood Product Manufacturing
This is the code for woodworkers making smaller items and home décor rather than furniture. It covers wooden products that don’t fit into the furniture category:
- Cutting boards, serving boards, and charcuterie boards
- Wooden signs, home décor items, and wall art
- Wooden bowls, trays, and boxes
- Candle holders, plant stands, and shelf décor
- Wooden toys and educational items
- Holiday and seasonal decorations
| Code | Description | Best for |
|---|---|---|
| 321999 | All Other Miscellaneous Wood Product Manufacturing | Wood crafters making home décor, small items, and gifts |
If your shop sells a mix of furniture and smaller crafts, choose the code that best represents your primary revenue source. Many craft fair woodworkers who make signs, boards, and home décor items will be a better fit under 321999, while those whose main product is furniture will use 337122.
NAICS code for custom millwork and cabinetry
If your woodworking business focuses on custom cabinetry, built-in shelving, architectural elements, or millwork installed into homes and commercial spaces, a more specific code applies:
337212 — Custom Architectural Woodwork and Millwork Manufacturing
This code covers businesses that fabricate custom woodwork to specification for installation — kitchen cabinets built to order, custom built-in bookcases, crown moulding, wainscoting, and similar architectural woodwork. It’s distinct from 337122 (which covers freestanding furniture) and is the right code if your work is primarily installed rather than freestanding.
| Code | Description | Best for |
|---|---|---|
| 337212 | Custom Architectural Woodwork and Millwork Manufacturing | Custom cabinetmakers and architectural millwork businesses |
NAICS codes for woodworking wholesalers
If you sell primarily to other businesses — furniture stores, interior designers, retailers, or boutiques — rather than directly to end customers, a wholesale code may better describe your business:
423310 — Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers
This code covers businesses primarily engaged in selling lumber, wood products, and millwork to retailers and other businesses. If you wholesale finished wooden goods (not raw lumber), 423990 — Other Miscellaneous Durable Goods Merchant Wholesalers may be more accurate depending on your product type.
If your business does both — you make the pieces and sell some wholesale — choose the code that best represents your primary channel by sales volume. Most independent woodworkers will still be a better fit under a manufacturing code even if they do some wholesale.
NAICS codes for woodworking retailers
If you sell wooden goods you didn’t make yourself, or if you operate a furniture or home goods shop, these retail codes apply:
| Code | Description | Best for |
|---|---|---|
| 442110 | Furniture Stores | Furniture retailers selling to end customers |
| 453220 | Gift, Novelty, and Souvenir Stores | Craft market sellers reselling wooden gifts and décor |
| 454110 | Electronic Shopping and Mail-Order Houses | Online-only resellers without a physical presence |
442110 covers furniture stores — including small one-person operations that resell wooden furniture at markets or through showrooms without making the pieces themselves.
453220 applies to craft market and gift shop sellers who resell wooden home décor and gift items they purchased from a maker or supplier.
If you make your own wooden products, avoid these retail codes. A manufacturing code (337122 or 321999) better reflects your cost structure and supports your COGS deductions.
Special cases worth knowing
Custom furniture makers
If you design and build furniture to individual customer specifications — a dining table in specific dimensions, a custom bedroom set — you’re still a manufacturer. The relevant code is still 337122. Custom work is covered within wood furniture manufacturing under NAICS.
Wood turners and artisan woodworkers
If you primarily make turned pieces — bowls, vases, candlesticks, handles — on a lathe, or create decorative wooden art objects, 321999 (All Other Miscellaneous Wood Product Manufacturing) is generally the best fit. If your work straddles art and craft and your pieces are sold in galleries or as fine art, 711510 — Independent Artists, Writers, and Performers is an alternative, though it implies a different cost and revenue structure.
Wooden toy makers
Wooden toys (blocks, puzzles, pull toys, educational manipulatives) fall under 339930 — Doll, Toy, and Game Manufacturing rather than the wood product or furniture codes. If toys are your primary product, use 339930. If you make a mix of toys and other wooden items, use the code that best represents your largest revenue category.
Pen turners and small turned items
Small turned items like pens, bottle stoppers, and keychains are best classified under 321999 (All Other Miscellaneous Wood Product Manufacturing) since they’re small wood products rather than furniture.
How to choose the right code
Here’s a simple decision path:
- Do you make furniture from raw wood? → Use 337122 (Nonupholstered Wood Household Furniture Manufacturing)
- Do you make wood crafts, home décor, or small wooden items? → Use 321999 (All Other Miscellaneous Wood Product Manufacturing)
- Do you build custom cabinetry or architectural millwork? → Use 337212 (Custom Architectural Woodwork and Millwork)
- Do you make wooden toys primarily? → Use 339930 (Doll, Toy, and Game Manufacturing)
- Do you sell mainly to retailers and designers, not end customers? → Consider 423310 or 423990 (Merchant Wholesalers)
- Do you resell wooden goods you didn’t make? → Use 442110 (Furniture Stores) or 453220 (Gift, Novelty, and Souvenir Stores)
If you make furniture or wood crafts and sell them under any combination of Etsy, craft fairs, markets, Instagram, or your own website, 337122 or 321999 is almost certainly the right code based on your primary product type.
For a broader view of NAICS codes across different handmade niches, the NAICS codes for handmade businesses post covers soap, candles, jewellery, and more.
Tracking your raw materials once you’ve chosen your code
Choosing 337122 or 321999 tells the IRS you’re a manufacturer with significant inventory costs. That means your Schedule C should reflect real material expenses — the cost of the lumber, hardwood, plywood, hardware, stain, finish, and other supplies that go into your pieces.
That’s where many woodworkers run into trouble at tax time. If you’ve been tracking materials informally — receipts in a folder, a rough estimate of board feet used — calculating accurate COGS is harder than it should be.
Craftybase’s woodworking inventory software is built for exactly this situation. You set up recipes (bills of materials) for each product, track your lumber and hardware inventory, and the software calculates your cost per piece automatically. At tax time, your material costs and COGS figures are ready from real data rather than estimates.
Frequently Asked Questions
What is the NAICS code for woodworking?
The two most common NAICS codes for woodworking businesses are 337122 — Nonupholstered Wood Household Furniture Manufacturing (for furniture makers) and 321999 — All Other Miscellaneous Wood Product Manufacturing (for wood crafters making home décor, signs, cutting boards, and similar items). The right code depends on your primary product type.
What NAICS code should I use for a custom furniture business?
Custom furniture makers use 337122 — Nonupholstered Wood Household Furniture Manufacturing. This code covers all wood furniture made from raw materials — including custom-order pieces built to specific customer dimensions and specifications. Custom fabrication is explicitly covered within wood furniture manufacturing under NAICS. You're a manufacturer regardless of whether you sell standard designs or one-off custom builds.
Is woodworking classified as manufacturing for tax purposes?
Yes. If you take raw materials — lumber, hardwood, hardware — and transform them into finished wooden products, you're classified as a manufacturer under NAICS. This is advantageous for tax purposes: a manufacturing classification supports deducting your materials as cost of goods sold on Schedule C, rather than treating them as simple business expenses. It also aligns your return with the IRS's expectations for a maker with real inventory costs.
What NAICS code do woodworking crafters use for Etsy or craft fairs?
Woodworking crafters selling on Etsy or at craft fairs typically use 321999 — All Other Miscellaneous Wood Product Manufacturing if their primary products are home décor, signs, cutting boards, or small wooden gifts. If you primarily make furniture, use 337122 instead. Selling through Etsy or at a market doesn't make you a retailer — you're a manufacturer because you make the items from raw wood.
What is the difference between NAICS 337122 and 321999 for woodworking?
337122 covers manufacturers of wood household furniture — tables, chairs, beds, shelves, cabinets. 321999 covers all other wood product manufacturing — smaller items like cutting boards, signs, home décor, bowls, and gifts. The distinction is the product type, not the business size or how you sell. Choose based on what generates the majority of your revenue.
Does my NAICS code affect how I report material costs on Schedule C?
Yes, indirectly. A manufacturing NAICS code (337122 or 321999) signals to the IRS that your business has significant inventory and material costs. This supports completing Part III of Schedule C to calculate your cost of goods sold — the lumber, hardwood, hardware, stain, and finish that go into each piece. Using a retail code when you're actually manufacturing wooden goods creates a mismatch between your reported cost structure and what the IRS expects for your industry.
Quick reference: NAICS codes for woodworking businesses
| Business Type | NAICS Code | Description |
|---|---|---|
| Furniture maker (tables, chairs, shelving) | 337122 | Nonupholstered Wood Household Furniture Manufacturing |
| Wood crafter (décor, signs, cutting boards) | 321999 | All Other Miscellaneous Wood Product Manufacturing |
| Custom cabinetmaker / architectural millwork | 337212 | Custom Architectural Woodwork and Millwork Manufacturing |
| Wooden toy maker | 339930 | Doll, Toy, and Game Manufacturing |
| Wood products wholesaler | 423310 | Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers |
| Furniture retailer (reselling, not making) | 442110 | Furniture Stores |
| Craft market / gift shop reseller | 453220 | Gift, Novelty, and Souvenir Stores |
Once your NAICS code is sorted, the next step is making sure your books support the manufacturing classification you’ve claimed. That means tracking the true cost of every piece you make — lumber, hardware, finish, labour — so your Schedule C reflects real numbers at tax time.
Craftybase’s woodworking inventory software handles exactly this: set up a recipe for each product, track your lumber and hardware inventory, and your COGS figures are calculated automatically. Start a free 14-day trial and see how much easier tax time gets when you’re tracking properly from the start.
